Is it essential for a nation to build its own cars, or toys, or ships? Do indigenous companies have an advantage over the competition when it comes to retaining innovation within the same country, or is this attitude just nationalistic flag-waving?
In many cases, global trade deals make it hard for governments to block investment from foreign companies. But as an industry that is growing fast – like IT services in Brazil – faces the prospect of local companies being snapped up by foreigners, the question of protectionism is raised.
But what is protectionism? Can you think of a Brazilian brand of car? Yet thousands are employed in the automobile industry in Brazil. Can you think of a British IT company? Yet thousands are employed working in IT in the UK. In my own career in the UK, I worked for the Japanese, Germans, Americans, and French before ever working for a company that could be called ‘British’.
IT Decisions recently reported the sale of Politec to Spain’s Indra. In a globally connected world of commerce there is nothing to prevent a European IT firm from seeking to buy one in Brazil – and to keep on employing people in Brazil. But recently, Antonio Gil of Brasscom explained to IT Decisions that it would be desirable to maintain some local ownership of the IT industry.
Gil’s view is understandable. Nobody wants to see their entire local industry bought out by foreign firms. But does it matter and is it now impossible to prevent a rush of foreign interest in the Brazilian IT sector?
With the US and Europe facing further economic pressure, IT suppliers in those markets are looking for markets that are still growing. Brazil is a large market for IT services and the easiest way into that market is via the acquisition of a local player.
So more purchases are to be expected. The only question is when and who – not if.
It’s a complex debate, but we want to hear your views. Please take just one minute to complete this survey (English or Portuguese) and please do pass it on to your friends and colleagues.
We will report back on what you tell us next week.
Photo by Jason Jones licensed under Creative Commons
IT Decisions [historic site] 
Esta realmente é um questão relevante, mas como você mesmo bem lembrou, de difícil resposta. Parece um daqueles velhos dilemas: Quem nasceu primeiro, o ovo ou a galinha?
Se do ponto de vista estratégico é importante que produtores de bens em um determinado país sejam “nacionais”, há de se lembrar que na atual conjuntura Mundial seria uma utopia esperar que a maioria das empresas sejam “nacionais”. O importante nesta economia Global me parece estabelecer uma relação de equilíbrio entre capital nacional, estrangeiro e interesses nacionais. Cabe, então, aos governos atuar como reguladores desta reação.
No meu entender, empresas estrangeiras criam, sim, empregos, mas numa fase inicial. Com o passar dos tempo, o dinheiro vai saindo do País.
Mas é diretamente prejudicial, o fato de empresas com muito poder, engolirem as empresas menores – as que criam mais empregos. Governos são corruptos.
Não sou contra a vinda de capital estrangeiro, pelo contrário, mas esta é a realidade em alguns setores.
Dear,
As I wrote before, many countries and foreign investors are eyeing the technology sector in Brazil. Investment funds in Silicon Valley, as well as Spanish and British investors are looking for Brazilian start-ups in which to invest and looking at how they can create partnerships with Brazil.
I believe, we should seek for cooperation and strategic alliances. Why would we rediscover the wheel? However, it does make sense to find partnerships that could give Brazil some advantage in service delivery from the internal and external market points of view. I agree with the view that Brazil must find a unique selling proposition and its wide range of expertise in open source software is an obvious area of potential that has not been fully exploited.